Olive Branch From Athens

April 10, 1986

Secretary of State George Shultz's recent working lunch with Greek Prime Minister Andreas Papandreou went almost unnoticed as conflict boiled in the Gulf of Sidra. But this friendly tete-a-tete is a heartening sign after years of sour relations.

The United States and Greece have too many security interests in common to continue holding each other at arm's length. Moreover, better relations would justify the United States' helping Greece with its suffering economy.

The roots of this dispute can be traced to 1981, when Mr. Papandreou -- the country's first socialist prime minister -- came into office. He promised to close U.S. military bases in Greece and withdraw from membership in NATO. Mr. Papandreou even went so far as to pull Greek troops out of NATO exercises.

Those were shortsighted political sops meant to appeal to some of his followers. Though Mr. Papandreou hasn't admitted that he made a mistake, he clearly is backpedaling now. For example, Mr. Papandreou has suggested renegotiating the agreement that covers U.S. bases in Greece when it expires in 1988. That position makes sense because the bases are critical to the security of both countries, as well as NATO.

But that's not the only reason Mr. Papandreou, now in his second term, is extending an olive branch to the United States. Evidently, he's interested in securing U.S. help to solve Greece's worsening economic problems. The country faces a $2 billion annual trade deficit, 18 percent inflation, rising unemployment and a $15 billion foreign debt.

The United States could help by increasing trade and encouraging Americans to invest in Greece. For its part, Greece must continue to cooperate on military matters. By working together in this fashion, the two countries can be more effective against true enemies.